Old economy ads fuel new media

FrankBarnako

More than half of the top online advertisers in March were so-called brick and mortar companies, according to a report from Nielsen/NetRatings
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Traditional advertisers spent $123.3 million online as dot-coms earmarked $104.8 million, the researchers said. NetRatings vice president Allen Weiner called the report "a changing of the guards in the world of online advertising." NetRatings released its data Wednesday in Los Angeles at the Ad:Tech trade show. The Interactive Advertising Bureau's vice chairman, Richy Glassberg, is expected to offer a keynote at the conference in which he argues the current weakness in online ad sales is not just a downturn in Internet advertising, but rather a slump in the advertising industry.

Ad:tech also heard that consumer packaged goods companies are finding success advertising on so-called niche Web sites. Jupiter Media Metrix
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said such companies spent 55 percent of their dollars on niche sites in the first quarter, up from 44 percent in the last quarter of last year. "The costs of doing business with these smaller affinity sites are typically lower than the portals ..." said senior analyst Mike May. He said alcohol advertisers increased their buys on sports and automotive sites; cosmetic advertisers added ad impressions on fashion, personal expression, and children and family sites.

Inside.com: What price is right?

Inside.com is asking visitors how much they would pay to read the site's behind-the-scenes coverage of the entertainment industry. An e-mail to readers, posted on the Web at Jim Romenesko's MediaNews, asks, "Would you pay $1.95 a month? $2.95 a month? $3.95 a month? more? even less? nothing? What would a membership be worth to you and what do you think others would pay? Tell us why." The message details the features to be included with a subscription including news reports, discounts on purchases of newsletter and seminar access, and an archive of entertainment and media industry articles.

Webcast listening rises

A weekly index of online radio listening released Wednesday shows a slight increase, according to MeasureCast. The gain in the gauge, from 132 to 135, came despite decisions by many AM and FM broadcasters to terminate Webcasts after being made aware they were obligated to pay additional fees to performers whose commercials were streamed online. "Internet radio continues to grow. We've seen a 35 percent increase in the total number of hours streamed since January," said CEO Ed Hardy. Internet-only stations have been getting more attention. In fact, 14 of the top 25 stations in last week's list were Internet-onlys, compared to five in the MeasureCast standings for the week ending April 1. The top three Webcasters were MediAmazing.com, Virgin Radio and RadioMargaritaville.com

Microsoft has bolstered its guide to online audio and video programming. The new WindowsMedia.com includes the addition of guides for content including business, news and sports. New content providers include AudioBasket, Bloomberg News and Guinness World Records.

Salon subscriptions, a progress report

The week-old subscription service being offered by Salon.com is "off to a roaring start," reported managing editor Scott Rosenberg. In a message on the site, Rosenberg also denied a published report the online magazine planned to move to an all-subscription format within a year. "That's not our plan. Of course, there's no way to predict the future. But we're committed to making the Premium subscription plan work as we've built it -- as an option," he said. He offered no tally of sign-ups for the extra content and ad-free format of the $30-a-year Salon Premium service.

No stores for Amazon.com

Rumors that Amazon.com
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would try to extend its cyberspace brand name to retail space on street corners have been denied. Speaking at an investment conference in Seattle, Vice President of International Operations Diego Piacentini said, "The answer, for now, is no, because we would not be able to add any value to the retail market," Reuters reported. He said the company does not know how to sell in brick-and-mortar locations.

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